Bermuda has signed a bilateral agreement with France to bring its total number of signed tax information exchange agreements (TIEAs) to 16.

Finance Minister Paula Cox yesterday announced the agreement that provides for a full exchange of information on criminal and civil tax matters between the two countries.

It comes as a coup after French President Nicolas Sarkozy has previously said that jurisdictions who fail to meet global tax transparency standards by March 2010 should be punished with sanctions.

Currently, jurisdictions need to have 12 TIEAs in place to ensure a place on the Organisation for Economic Cooperation and Development's (OECD) "white list", with Bermuda receiving international recognition in June for being the first country to ascend to the OECD white list from the grey list, with the signing of its 12th TIEA, with The Netherlands.

"Bermuda's ties with France extend beyond our treaty relationship to working together in a leadership position of the OECD Global Forum to advance international co-operation in tax information exchange and to represent all members of the Global Forum in achieving a global level-playing field based on fairness and transparency," said Minister Cox.

"Through our amicable and productive bilateral negotiation process, as well as by our mutual achievement today in signing, our two countries have further cemented our close relationship.

"Bermuda now has TIEAs in place with France, Germany, the UK and the US, who together lead the G20's fight against tax havens. These international agreements secure Bermuda's position as a premier international financial centre, and reinforce the position that we offer value in the international market place in that we support real businesses offering services worldwide and we are not a jurisdiction whose growth is based on non-transparency or secrecy." Brad Kading, president and executive director of the Association of Business Insurers and Reinsurers (ABIR), said that Bermuda was an important trading partner for French ceding insurers, with ABIR members providing an estimated 35 percent of the property catastrophe reinsurance bought through the broker market by French insurance companies.

"Bermuda companies play an important role in managing European flood and windstorm risk," he said. "In addition, Bermuda's insurers and reinsurers will pick up an estimated 22 percent of the liabilities for the tragic Air France plane crash earlier this year."

David Ezekiel, chairman of the Association of Bermuda International Companies echoed Mr. Kading's sentiments.

"This is another major step forward for Bermuda," he said. "France has a major involvement in the Bermuda market by way of ownership in and trading with Bermuda-based companies and the signing of the TIEA with such a significant partner represents substantial progress.

"The Ministry deserves congratulations in its continuing efforts on behalf of the Bermuda and the companies that operate here."